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Office of the Revisor of Statutes

    Subdivision 1. Definition and purpose. For the purpose of this section, "decoupling" means
a regulatory tool designed to separate a utility's revenue from changes in energy sales. The
purpose of decoupling is to reduce a utility's disincentive to promote energy efficiency.
    Subd. 2. Decoupling criteria. The commission shall, by order, establish criteria and
standards for decoupling. The commission shall design the criteria and standards to mitigate the
impact on public utilities of the energy savings goals under section 216B.241 without adversely
affecting utility ratepayers. In designing the criteria, the commission shall consider energy
efficiency, weather, and cost of capital, among other factors.
    Subd. 3. Pilot programs. The commission shall allow one or more rate-regulated utilities to
participate in a pilot program to assess the merits of a rate-decoupling strategy to promote energy
efficiency and conservation. Each pilot program must utilize the criteria and standards established
in subdivision 2 and be designed to determine whether a rate-decoupling strategy achieves energy
savings. On or before a date established by the commission, the commission shall require electric
and gas utilities that intend to implement a decoupling program to file a decoupling pilot plan,
which shall be approved or approved as modified by the commission. A pilot program may
not exceed three years in length. Any extension beyond three years can only be approved in a
general rate case, unless that decoupling program was previously approved as part of a general
rate case. The commission shall report on the programs annually to the chairs of the house of
representatives and senate committees with primary jurisdiction over energy policy.
History: 2007 c 136 art 2 s 6